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A water heater is sold by a trader for Rs. 10,502 including GST at 18%. Find the GST amount.

  • A.Rs. 1,802
  • B.Rs. 1,602
  • C.Rs. 1,620
  • D.Rs. 1,820

Answer: B

The price including 18% GST is 118% of the base price, so the base price is 10,502 / 1.18 = Rs 8,900.

The GST amount is 10,502 - 8,900 = Rs 1,602, option B. Rs 1,620 would be 18% of 9,000.

The price with GST is 118 per cent of the price without it, so the base is 10,502 x 100 / 118 = 8,900. The common error is to take 18 per cent of 10,502, which gives 1,890, while another is 18 per cent of 9,000 (1,620), and neither is the answer.

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